{"id":10450,"date":"2025-10-20T12:05:18","date_gmt":"2025-10-20T10:05:18","guid":{"rendered":"https:\/\/www.rivistaeco.com\/?p=10450"},"modified":"2025-10-20T12:05:18","modified_gmt":"2025-10-20T10:05:18","slug":"the-electric-revolution-is-still-without-batteries","status":"publish","type":"post","link":"https:\/\/www.rivistaeco.com\/en\/2025\/10\/20\/the-electric-revolution-is-still-without-batteries\/","title":{"rendered":"The Electric Revolution Is (Still) Without Batteries"},"content":{"rendered":"

Assessing an electricity system means considering several different goals \u2014 often inconsistent with one another: competitiveness, security of supply, and environmental sustainability. Renewables are central to Europe\u2019s strategy but pose challenges across the entire production chain: high costs, non-programmable generation, the need for fossil reserves, and major grid investment. In Italy, electricity prices remain among the highest in Europe. The explanation lies in the very nature of the system, which must be oversized and flexible, with plants ready to step in when needed and a \u201csmart\u201d structure to manage it all. Looking ahead, the solution lies in batteries that can store energy \u2014 but for now, we are still in an early, if promising, phase. In short, the energy transition is under way, but it remains complex and expensive.<\/em><\/p>\n

 <\/p>\n

How can an electricity system be assessed? How do we know if it works well or poorly? In essence, it\u2019s like a puzzle: the pieces must fit together to form a coherent picture. It also has to meet multiple functions, which is why a single indicator can hardly capture the whole picture.<\/p>\n

Let\u2019s start from the beginning. The purpose of an electricity system is to allow a country to achieve a range of goals \u2014 some complementary, others potentially conflicting. Traditionally, European policy defines three main objectives: the competitiveness of the economic system, the security of energy supply, and environmental sustainability. In other words, energy must be affordable for businesses, environmentally responsible (in the broadest sense), and shielded from the risk that international events could disrupt supply. Competitiveness, environment, security.<\/p>\n

Renewables: The Holy Grail of Sustainability?<\/strong><\/h3>\n

From an environmental standpoint, the solution has been identified in the development of renewable energy generation \u2014 primarily water, sun, and wind.<\/p>\n

For many years, renewables seemed like the ideal answer to all major challenges. In the prevailing European narrative, they were considered not only environmentally neutral (or at least negligible in terms of carbon emissions), but also immune to foreign supply risks: after all, sunshine and wind aren\u2019t imported.<\/p>\n

On this basis, Europe set ambitious goals \u2014 still far from full achievement (see also Carlo Stagnaro\u2019s article in this issue, ed.). Italy, compared with other countries, can\u2019t claim to be a leader, but it has made significant progress. The current situation can be seen by examining the share of renewables in electricity generation: the chart below shows the composition of each country\u2019s power generation mix, divided among renewables, nuclear, and fossil fuels.<\/p>\n

\"\"<\/p>\n

 <\/p>\n

However, some question whether renewables alone are a sufficient answer. In fact, the trade-off between landscape preservation and energy-system sustainability is often cited. As so often happens, the blanket is too short.<\/p>\n

If we look only at the electricity system, we can say that Italy earns a passing grade \u2014 especially considering the transition path it has undertaken.<\/p>\n

And What About Competitiveness?<\/strong><\/h3>\n

On the competitiveness front, Italy\u2019s situation is far from brilliant: our country has one of the highest electricity costs in Europe. The chart below illustrates household electricity prices across European countries.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

 <\/p>\n

As shown, Italy records one of the highest electricity prices in Europe. The picture doesn\u2019t change much when industrial prices are considered, although those calculations are complicated by special regimes and subsidies. Even here, finding simple explanations \u2014 let alone solutions \u2014 is far from easy.<\/p>\n

Historically, Italy has rejected nuclear energy \u2014 a source that, although often heavily subsidized by the state, helps moderate prices in the countries that use it. The result has been a heavy reliance on fossil fuels, which have always been expensive, and have become even more so since the crisis in Ukraine.<\/p>\n

Can renewables provide the answer? Only partially. Hydropower is almost certainly advantageous: countries with abundant water resources that have learned to harness them \u2014 such as Finland \u2014 are now reaping the benefits.<\/p>\n

For other renewables, the assessment is less clear-cut. For years, wind and solar were uncompetitive; today, they are far more viable, both because fossil-fuel prices have risen and because technological progress has cut production costs. That said, public \u201cincentives\u201d (read: subsidies) for these sources remain.<\/p>\n

But the main issue lies elsewhere: a high share of wind and solar leads to higher system costs. Let\u2019s see why.<\/p>\n

The Dark Side of Renewables<\/strong><\/h3>\n

The first problem with renewables is their non-programmable nature: we cannot decide when the sun will shine or the wind will blow. When these conditions occur, plants generate power \u2014 whether it\u2019s needed or not; when they don\u2019t, there\u2019s little that can be done. And if the system needs electricity precisely when renewables are unavailable? Then backup plants must be ready to intervene \u2014 most of them powered by fossil fuels.<\/p>\n

Even the less intermittent renewables, like hydropower, are not always reliable. In Italy, rainfall has been declining, and with it hydroelectric generation. There are good years and bad years, but the trend over the past fifteen years is not encouraging.<\/p>\n

Traditional thermoelectric plants can be started up relatively quickly \u2014 but not instantly. To handle sudden drops in renewable output, some reserve plants must remain on standby \u2014 the so-called \u201chot reserve\u201d \u2014 ready to switch on in emergencies. This reserve service is paid through the balancing market, and its cost rises as the system\u2019s need for backup grows. Renewables are not the only reason for this market, but they certainly increase both its necessity and cost.<\/p>\n

A second issue concerns system adequacy \u2014 the proper sizing of generation capacity. Outside the peak daylight hours, solar stops producing, and wind cannot be relied upon due to its variability. This means the rest of the generation fleet must be able to meet total demand on its own. In practice, the system must have significant overcapacity: many plants that remain active and ready to operate, though they produce only for limited hours per year.<\/p>\n

In some weeks, renewables cover only 27% of demand; in others, as much as 60%. In the former case, the system must rely heavily on traditional generation; in the latter, conventional plants operate little and cannot earn enough to cover annual fixed costs.<\/p>\n

A generation plant can remain economically viable only if it produces and sells enough energy throughout the year. To keep such a large fleet available \u2014 even if underused \u2014 and ensure security of supply, additional payments must be introduced, independent of actual production. Another cost, therefore, that weighs on the system as a whole.<\/p>\n

The transmission and distribution grid also requires additional upgrades and investment to handle a generation fleet dominated by renewables, for two main reasons.<\/p>\n

First, a significant share of non-programmable renewables increases the risk that energy flows between power plants and users fluctuate or reverse abruptly \u2014 placing greater stress on the grid.<\/p>\n

Second, there is the issue of geographic distribution. The grid, as originally designed, was meant to connect a few large generators to countless consumption points \u2014 with unidirectional and relatively stable flows. Today, there are thousands of points that not only draw power but also produce it. This completely changes the equation: targeted investments are needed to enable the grid to manage bidirectional flows.<\/p>\n

In practice, the same grid node can become an input point when local generation exceeds local consumption, and an output point in the opposite case.<\/p>\n

Given the typical daily pattern of solar generation, as the sun sets, power flows reverse in many parts of the grid: places that generated electricity during the day suddenly become consumers. This transformation has made it necessary to move from traditional grids to smart grids, a shift that also entails significant financial commitments.<\/p>\n

In essence, integrating renewables \u2014 a fully legitimate goal \u2014 requires: an oversized generation fleet; standby plants that remain active even when not producing; and substantial investment to modernize the grid to handle these changes.<\/p>\n

How Do We Move Forward?<\/strong><\/h3>\n

So, are we doomed to keep traditional plants alongside renewables? I believe so \u2014 as long as they are flexible, able to ramp up quickly when needed.<\/p>\n

In this respect, I do not see nuclear power as an effective answer. The new-generation reactors (when they become available) will certainly be cleaner, but they will retain a key feature of current ones: once started, they produce power continuously, 24 hours a day. Renewables, by contrast, require plants that can start and stop on demand.<\/p>\n

The alternative lies in large-scale batteries for energy storage. Until recently, this seemed utopian \u2014 yet today they exist and are spreading rapidly. That\u2019s the good news. The less good news is that the only truly efficient batteries for now are lithium-based \u2014 essentially extra-large versions of the ones in your remote control. There is some irony in the fact that the electric transition depends on an element \u2014 lithium \u2014 whose extraction and disposal carry significant environmental costs. We can only hope that technological progress will help us overcome this contradiction.<\/p>\n

Ultimately, between trial and error, inconsistencies and progress, is the system working? We can say that the green transition is indeed underway \u2014 but at a high price. We remain bound by past choices and the current limits of technology. Renewables are indispensable, but miracles \u2014 those, perhaps, will have to wait for the next life.<\/p>\n

 <\/p>\n

Carlo Scarpa is Professor of Political Economy at the University of Brescia. From 2015 to 2024, he served as president of Brescia Mobilit\u00e0, the company managing public transport in the city of Brescia.<\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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